This document discusses key aspects of sales management including: 1. Sales is the only business function that generates revenue. 2. It discusses the importance of revenue generation, delegation, continuation, detection, collection, and retention for a sales organization. 3. Effective sales management requires planning, directing, and controlling the personal selling process which includes recruiting, selecting, training, supervising, compensating, and motivating the sales force.

1. Sales management
The only business function that
generates revenue.

2. WHY?
 Market is too big
 Competitors are too big
 Customers are everywhere
 Opportunities are immense
 Ambitions are limitless
and……
u r not
RAVAN

3. What is the Animal all about
 Revenue Generation (Sales Earning)
 Revenue Delegation (Sales Organisation)
 Revenue Continuation (Sales Motivation)
 Revenue Detection (Sales Monitoring)
 Revenue Collection (Sales Accruals)
 Revenue Retention (Sales Force continuum)
Planning, direction and control of personal selling including recruiting, selecting, training, equipping, assigning,
supervising, compensating and motivating as these tasks apply to the personal sales force.

4. Sales Organisation determinants
 Type of Market
 Geographic and Demographics
 (Pharma, FMCG sales)
 Type of Product
 Consumer Products
 Customer Products
 Industrial Products

5. Sales organization
 With various tasks required to be
performed the enterprise had to create a
structure to ensure that work is done.
 Principles of structure: authority,
responsibility, performance, support/co-
ordinate.

6. Purpose of organization
 Eliminate waste of effort
 Minimize friction
 Maximize co-operation
 Permit development of specialists
 Define authority
 Fix responsibility

7. Types of organization
structures
 Line organization: line managers
perform sales and sales management
activities.
 Functional organization: focus is on
the principle of specialization. Each
specialist has a functional responsibility
and are permitted to direct and control
the salesperson thru their immediate
superior.

8. Line Sales Organization structure
Head –Marketing
Sales Manager
Area Sales Mgr Area Sales Mgr Area Sales Mgr Area Sales Mgr
Sales Force Sales Force Sales Force Sales Force
Clear authority & Responsibility
Quick response & Decision, Low Cost
Weak on marketing inputs
Sales manager controlled

9. Functional Sales Organization
Administrative Simplicity
Access to Specialists
Multiple reporting
HOD is Pressures to co-ordinate

10. The sales budget
 A budget is a quantitative expression of plans. Most well
managed enterprises use a budget which is a
comprehensive and coordinated plan for the operations
and resources of the enterprise.
 It is a formal and intricate process
 Approaches are either incremental or zero based.
 In a volatile economic climate organizations estimate
optimistic, realistic and pessimistic scenarios.
To the sales department, the budget is a blue print for making sales. It involves money invested in distribution
facilities, promotion efforts, and sales personnel. It is the foundation on which to plan sales objectives and the
means of achieving them during the coming year.

11. Sales budget
Critical factors considered:
1. past trends
2. Sales force estimates
3. Trade prospects
4. Present scenario
5. Customers: existing and potential
6. Government policies
7. Industry environment

12. Number of sales people
 Decision on the size of the sales force is very
complicated because structure of the customers
vary in each territory, the level of competition
varies across territories, the connectivity for
travel varies etc.
 There are 3 generally accepted approaches:
affordability, incremental and workload
methods.

13. Sales Force Recruitment
TYPES OF SALES GUYS
 Dog – Smells the business
 Elephant – Pounds everyone around
 Shark – Screws up Competition
 Giraffe – Over the top
LOOK AT THE OBJECTIVE AND PICK PEOPLE
Quality v/s Loyalty
Growth v/s Incentives
Partner v/s Employee

14. Recruitment Sources
 Competition
 Referrals
 Staffing Agencies
 Friends and Families

15. Sales Training
 SHARE YOUR DREAM – Vision Illustratiion
 SHARE YOUR PLANS
 SHARE YOUR PRODUCTS
 SHARE YOUR CHARTS
 BUILD HIS DREAMS – Incentives
 BUILD HIS CAREER – Organisation Chart
 BUILD HIS CHARACTER – interest in his personal space

16. Sales Segmentation
Types ….
 Geographic Territory (FMCG)
 Product Territory (pharma)
 Functional Territory (industrial products)
Define Sales Territories to….
 Increase / improve customer coverage
 Control selling expenses
 Effective evaluation of salesman’s performance.
 improve customer relations
A sales territory consists of existing and potential customers assigned to a sales
person. The territory may or may not have geographic boundaries.

17. Sales Target Setting
WHY….
 To help management motivate sales people.
 To direct sales people where to put there efforts.
 To provide standards of performance evaluation
 S-specific
 M-measurable
 A-achievable
 R-realistic  Value Targets
 T-time bound  Volume Targets
 Product Targets
 Client/Account Targets
 Market Share Targets
Targets are quantitative goals assigned to individual sales persons for a specified period of time.

18. Sales Force Motivation
Drive to initiate an action.
The intensity of effort in an action
Why motivation The persistence of effort over
 Frequent rejection
 Physical separation from company support
 Direct influence on quality of sales presentation
 Indirect influence on performance

19. Sales force motivation
 “the desire to make an effort to fulfill a
need is motivation”
 Motivation includes three dimensions:
Direction, Intensity and persistence.
 Motivation may also be Intrinsic or
extrinsic

20. Maslow’s theory
Intense job challenge, full
potential, FULL EXPRESSION,
creative expansion.
Self
Actualisation
respect, recognition, prestige,
Esteem needs independence, attention,
IMPORTANCE,
Belonging, ACCEPTANCE, love,
Social needs affection, friendships.
Safety needs SECURITY, stability, dependency,
protection
Physiological needs Hunger, thirst, reproduction,
shelter, clothing, air, REST.
Food, clothing, shelter, health care

21. Sales Monitoring
 Annual Target Meetings
 Monthly Review Meets
 On Field Visits
 Dealer/Client Feedback
 Competition Reports

22. Sales Force Retention
 Incentivise
 Recognise
 Socialise
 Apprise
 Prioritise

23. HAPPY SELLING
“remember, money is not everything
………but its not short of everything”